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disabling security password upon unlocking

I upgraded to 2.2 yesterday and download was quick (<5 min) and install was equally quick.

When it rebooted to the new system it required me to establish a security code that comes on when you unlock the phone. I want to disable this function- but in the setting menu the choice to disable is there- but not able to be selected to be modified? Am I just missing something?

BTW: seems like a smart unlock as it only ask for your password if it has slept for a while (which makes me believe there is a setting somewhere that modulates the length of time after sleep that this is activated).

Thanks,

John
 
OK, think I can answer my own question.

In <settings> <location and security settings> <changes screen lock>, it does not allow me to disable the "screen and unlock security". It shows in small print "disabled by remote phone administrator." So, found in the <location and security settings> section under <device administration> that my service administrator is my exchange server. Apparently if you use an exchange server, 2.2 allows the this server to control your security options and apparently my exchange server requires that I use the passcode protection on unlock:(
 
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I had to reset my phone cause when I shut off my phone it wasn't playing to droid noise even when I turned it on, and I'm thinking it might have been a soundboard app that I downloaded from the market, or at least that's what verizon's claiming. The security lock thing didn't pop up again after that because the phone when activated again already have the 2.2 software on it so I haven't dealt with it since then, but when you do the factory reset you can check both the back up and restore features option and it will literally back up everything of your and put it back on your phone.

This is the only way I know how to get rid of it.
 
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